This paper constructs a firm-level data set of manufacturing firms in the Province of Shandong and examines whether the corporate performance, e.g., labor productivity, of foreign-owned firms, particularly of Korean firms, is superior to that of domestically-owned firms. In the regression analysis, we found the following: first, foreign-owned firms achieve significantly better performance. Second, the differences in corporate performance between domestically- and foreign-owned firms are particularly large in chemical and machinery sectors. Third, small sized Korean firms and Korean firms in fabricated materials and machinery sectors have relatively high performance among foreign-owned firms.